The government has withdrawn Article 23 of the bill on non-performing loans, following strong opposition from opposition parties and market bodies. The provision would have made debt restructuring agreements automatically «enforceable titles».
Deputy Finance Minister Dimitris Markopoulos announced the move, urging the other parties to vote in favour of the remaining provisions.
Opposition to the bill was also fuelled by the refusal of representatives of funds and servicers to attend the relevant committee (Economic Affairs) of Parliament, where the bill is being discussed, despite having said they would accept the invitation. Mr Markopoulos also voiced his displeasure at their absence at the start of the meeting.
Regarding EEDADP’s failure to attend Parliament, reports say the association of servicers sent a letter saying it had been notified at 09:04 this morning, less than an hour before the scheduled start of the meeting to which it had been invited.
The president of EEDADP was abroad and learnt of the invitation only a few minutes before the stated start time. His attendance—either in person or by video conference—was therefore practically impossible. EEDADP’s vice-president was also outside Greece and was consequently unable to attend or take part.
In addition to the opposition parties, the Coordinating Committee of the Plenary of the Presidents of the Greek Bar Associations and the Panhellenic Borrowers’ Association had also called for the article to be withdrawn.
Earlier today, PASOK leader Nikos Androulakis called publicly on the government to withdraw the article, which, he said, «turns a debt-resolution tool, such as the out-of-court mechanism, into a trap and a means of coercion for borrowers».
Mr Markopoulos said the government’s bill would impose rules on servicers («we will make them toe the line») and accused the opposition of «getting stuck on one article».
It has now withdrawn it.
It is worth recalling that the issue was brought to light by Euro2day.gr on 19 October.
«The New Democracy government was forced to withdraw the unacceptable Article 23 of the Ministry of National Economy and Finance’s bill. The provision sought to further strengthen the position of banks and debt-servicing companies at borrowers’ expense», commented Milena Apostolaki.
«The provision would have made debt restructuring agreements automatically enforceable titles, giving creditors an additional powerful means of enforcement and depriving debtors of stages of judicial protection.
This followed an effort to prevent the Plenary of the Bar Associations from being called, in order to silence the legal profession’s institutional response.
The PASOK president called for the provision to be withdrawn, and the government was forced to do so following the intervention of the opposition and the organisations that presented their views to the committee.
This development once again highlights the government’s approach to the legislative process: it first seeks to enact measures favourable to the powerful, then backs down in disarray when they provoke opposition.
Withdrawing the provocative provision is not enough. The government must amend a number of provisions that make the relationship between debtor and creditor extremely unbalanced and fail to ensure a genuine and sustainable second chance for vulnerable, responsible borrowers.
PASOK remains committed to the need for meaningful protection for borrowers, restoring the balance between creditors and debtors, and establishing effective safeguards against arbitrariness. It calls on the Speaker of Parliament to bring the bill we have submitted to the Plenary for debate and a vote».